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Informist, Wednesday, May 14, 2025

By Avishek Rakshit and Ashutosh Pati

KOLKATA/MUMBAI – Eicher Motors Ltd. could invest INR 12 billion to INR 13 billion in the ongoing financial year to develop and launch electric motorcycles, besides launching new products, the company's top management said Wednesday. In a call with sector analysts after declaring its financial results for the quarter and year ended March, Eicher Motors said that besides building up its manufacturing ability for electric motorcycles, the company will also spend money on new product development. Most of the new launches in the ongoing financial year could be in the middle-weight segment.

In the motorcycle industry, the middle-weight segment generally refers to bikes with engine displacement of 500-800cc, or sometimes 250-700cc, representing a balance between smaller commuter bikes and larger, more powerful models. This category also often encompasses a weight range of 130-200 kg, depending on the specific bike and its features.

Currently, of the 14 motorcycle models that Royal Enfield has, five are in the 350cc category and three models are in the 440-450cc category. The remaining six models have an engine power of 650cc.

"We are almost about 88% market share in the middleweight and our focus is also continuing to be in the middleweight and that's where more and more product will be launched and we will continue to have refresher products coming up," the company's management said.

Eicher Motors expects a bounce back in urban demand in the current financial year and expects growth momentum in demand to continue in the rural markets. "Last year the rural market has been very good and the urban market growth has not been so good. It was slightly muted. This year with the tax cut, especially on the income tax cut, we expect urban growth will start coming back. We are seeing the positive sentiments at least now, even in the month of April in the urban market," the company's management said.

The company is also bullish on the export prospects of Royal Enfield brand of motorcycles. "We do see even in the export markets the growth will be very good. But what we are doing at the back end is to get the export market growing in the long term," Eicher Motor's management said.

According to the company, its motorcycle, Himalayan, has seen good traction in Brazil and the company is hopeful to further sales in the Latin American country. In the case of Hunter brand of motorcycles, which was launched in 2024, the company is targeting the Indian youth and will continue to focus on this age group to drive growth.

Asked about the impact of rise in raw material costs, the company's management said it expects raw material volatility to continue for some time. On Wednesday, shares of Eicher Motors closed 0.5% higher at INR 5,446.50 on the National Stock Exchange.  End

Edited by Ashish Shirke

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